Big Picture: Ethereum’s overall trend has been volatile in recent weeks. Besides a couple of outliers, momentum has been slowly creeping to the upside. Having said that, yesterday’s re-test stimulated a strong reaction, and now requires a strong continuance to re-ignite a short-term hyper bullish momentum. Failure to capitalize on this chance would further derail momentum and put the range in a state of extreme indecision.
On the Upside Ethereum is poised to re-test the 1680 level. This is an important intra-session re-test. If price breaks above this level, it will return to the recent highs, while failure to do so on the initial attempts will compel intraday profit-taking. Also, the RSI indicator has had a solid bounce off of the 50 level. If buyers can break through 1680, the price will most likely aim for 1710, then 1730. A breakthrough beyond 1730 will pave the way into higher levels around 1780 to 1820.
On the Downside Ethereum saw a fantastic reaction after testing the major support levels. As the price dropped to re-test these levels, there was a significant increase in demand. The initial support has now climbed to 1650 level. Below this level, the next supports will be from the EMA-32 and EMA-50, which are placed at 1635 and 1615, respectively. Likewise, Ethereum is protected from any major selling events as long as the ascending trendline holds.